On the eve of the opening of the Chengdu car, the reporter found through multiple interviews that the auto companies will increase their focus on the third- and fourth-tier cities represented by the western cities. They have given many favorable business policies to local dealers, making the same model in the west. The city has the lowest price in the country. Taking the new Audi A6L as an example, in early August, the cash discount of the dealers in Xi'an market reached more than 20,000 yuan, and the store can also give further discounts. The same model in the Beijing market, the maximum discount range is about 8,000 yuan.
Luo Lei, deputy secretary of China Automobile Dealers Association, said in an interview that the important reason for this phenomenon is that the competition among dealers in the western market is far less intense than that in first-tier cities, so there is still a large price space that can be “self-regulatedâ€. . At the same time, he believes that because the western cities have been a key market for major auto companies for a long period of time, the price advantage may still exist for a long time.
Car companies' western strategy is speeding up again
According to the introduction of the Chengdu Motor Show Organizing Committee, the scale of this year's auto show has once again set a new record, covering an area of ​​more than 130,000 square meters, covering all nine exhibition halls of Chengdu Century City New International Convention and Exhibition Center. 420 automakers at home and abroad will bring more than a thousand exhibition cars to Rongcheng. It is worth mentioning that there are 30 car companies in this year's auto show with an area of ​​more than 1,000 square meters, an increase of 36% over last year.
In the luxury car market, the German Mercedes-Benz, BMW and Audi will make a high-profile appearance in a super-large booth and will bring a new starter model. Jaguar Land Rover and Volvo further expanded their booth area on the basis of last year, reaching 1,500 and 1200 square meters respectively. Chrysler, Acura, and Hyundai are exhibiting for the first time as manufacturers.
In terms of joint venture brands, Dongfeng Yueda Kia, Dongfeng Nissan, GAC Toyota and Beijing Hyundai and other mainstream car dealers were absent.
The importance of car companies to the western market, the reason, Dong Hao, the deputy head of the marketing headquarters of Dongfeng Nissan Passenger Vehicle Company, told reporters that the traditional first-tier city car market has begun to saturate, and most car manufacturers have increased the market. Expectations are placed in the Midwest. Chengdu, which is known as the "China's private car third city", is the core of the Southwest market.
From the enterprise level, I hope to focus on Chengdu and radiate the entire western and southwestern markets. This situation has started since last year. Volkswagen, GM, Toyota, Nissan and many other companies have taken measures from the channel. “North and South Volkswagen†is constantly increasing the speed of channel construction in the western market; FAW Toyota has proposed a more clear plan to build a store for the western market.
In the sales field, in the next few years of outlet expansion plans, second and third tier cities will become the focus of corporate strategic layout. In view of the strong influence of small and medium-sized cities on the radiation intensity of prefecture-level cities, the construction of manufacturers' channels is generally based on the establishment of secondary stores based on brand 4S stores.
In terms of independent brands, the use of price advantage to enter the second and third-tier markets has been sought after by many consumers. Su Hui, an expert in the automotive industry, said that auto manufacturers attach great importance to the Chengdu Auto Show, and each time they exhibit at the B-class or even A-level specifications. Manufacturers hope that through their debut at the Chengdu Auto Show, they will be able to effectively spread the entire regional market in the southwest while developing better in the local area.
The proportion of the western market has increased
According to data released by the National Passenger Car Association, in July, the average price of the automobile market dropped from 150,300 yuan to 145,900 yuan, showing a trend of continuous decline. According to the analysis of the association, the terminal market prices of the A00, A0, A, C, and SUV levels all fell in different degrees in July, which largely caused the overall price index to fall.
It is reported that in the process of the continuous decline in the market price of the western cities, the decline rate is higher than the average market price. While the overall market average price continues to decline, the proportion of sales in the western region is rising sharply.
The data shows that in the past five years, the growth rate of the eastern auto market was only 20.4%, while the growth rate of the western and central regions reached 27%. The western auto market is in a state of continuous improvement, and the eastern market is decelerating year by year.
The analysis believes that the focus of the domestic auto market is shifting from the east to the central and western regions, and the central and western markets are becoming new growth points. The change of this pattern not only set off a new wave of competition, but also pushed the central and western markets directly to a new strategic highland.
In Luo Lei's view, after years of construction, the western region has made great progress in infrastructure such as road traffic, which provides favorable conditions for the growth of the number of automobiles. Although the road network density is still less than that of the east, the construction of the western expressway network has basically ensured the rapid interoperability of the main roads between cities.
It is worth noting that the growth of automobiles in the western region should draw lessons from the accumulation of first-tier cities in the development of the automotive industry. According to the analysis, in the market cultivation and brand building, it is obviously not advisable to take a large discount to damage the brand in order to occupy the market in the short term.
“At present, Xi'an still dominates the market in terms of its own brand, but this situation is accelerating.†A Xi’an dealer told reporters that in this round of car climax, western cities are likely to compress first-tier cities. The transition time from self-owned brand to luxury car is very likely to be “one step at a timeâ€.
Therefore, the chain reaction caused by the price reduction of luxury cars in western cities will continue to affect the local market structure.
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